Monday, April 09, 2012

The Gold Price Appears to have Turned the Corner to the Upside Closing at $1,642.50

Gold Price Close Today : 1642.50
Change : 14.00 or 0.86%

Silver Price Close Today : 3151.30
Change : 20.3 cents or -0.64%

Gold Silver Ratio Today : 52.121
Change : 0.775 or 1.51%

Silver Gold Ratio Today : 0.01919
Change : -0.000290 or -1.49%

Platinum Price Close Today : 1612.90
Change : 12.90 or 0.81%

Palladium Price Close Today : 642.50
Change : -3.60 or -0.56%

S&P 500 : 1,382.20
Change : -15.88 or -1.14%

Dow In GOLD$ : $162.73
Change : $ (3.04) or -1.83%

Dow in GOLD oz : 7.872
Change : -0.147 or -1.83%

Dow in SILVER oz : 410.29
Change : -1.49 or -0.36%

Dow Industrial : 12,929.59
Change : -130.55 or -1.00%

US Dollar Index : 79.78
Change : -0.104 or -0.13%

All those crowing the
GOLD PRICE funeral dirge have been a mite previous, seeing that gold jumped $14 today to end at $1,642.50. Low never reached below $1,636.10, while gold closed nearer its $1,648.11 high.

To validate last week's Wednesday spike bottom, the GOLD PRICE needs to remain above $1,630. No telling what Bernancubus will say tonight, so no telling which way gold will jump, but Bernancubus' effects never last as long as an 80 grain aspirin.

The GOLD PRICE appears to have turned the corner to the upside.

SILVER PRICE on the other hand, fell 20.3c today to close Comex at 3151.3c. Silver handily defended 3100c with a 3099 low, but traded no higher than 3192c. None of this is great, but it's okay as long as SILVER remains above 3100c.

Oh, mercy, the Bernancubus is speaking in Georgia (the one around Atlanta, not the one around Tblisi) tonight, and markets are all a-moiling, not knowing what he will say. The Moneychanger is a-moiling because no matter what he says, there's no gauging the public's irrational response to it.

Y'all think about this. Y'all are grown people, competent to run your own lives and make generally good choices, but your economic future is chained to this apparatchik's bloviation du jour, because he runs the private bank that manufactures out of thin air the money you must use in your business. Wherefore it is easily seen that it needs only a single moron to mess up the plans of millions of intelligent people, under our present "stabilizing" system.

Let us cut to the bone: no matter what the Bernancubus says, and no matter what the public thinks of it, he will inflate more because he can do no other. Other power hath he none, save to inflate, so he will.

And you can INVEST on that.

Stocks fell into morale-bruising territory today. As it has long been signaling, the Dow fell below 13,000, dropping 130.55 to 12,929.59, down 1%. The more important S&P500 fell 15.88 (1.14%) to end at $1,382.20, further still from the psychologically critical 1,400.

Now let us poke around at other technical measures. Dow now has fallen below both its 20 DMA (13,146.48, several days ago) and its 50 DMA (12,980 today). It left behind a double, nay, a triple top, which is to markets as Warfarin is to wharf rats. The RSI is a little below 50 at 41.66 and the MACD is pointing down like the sign at the mouth of the netherworld.

But here lieth the Potemkin-ness of it all: with a few words tonight, the man who has never actually run a business or produced anything for a living will, economic outlook notwithstanding, drive all those stocks in one direction or t'other. 'Tis nuts.

Seems the currency markets anticipate Bernancubus will say something pointing to inflation, since the US dollar index is trading 28.8 basis points lower than Thursday (0.35%). Noteworthy here is a close below round-number and resistance at 80. Yet the dollar remains in a short term uptrend. Dollar index now at 79.782.

The Japanese yen took advantage of dollar worries to gain a full 1% today to 122.69c (Y81.51). Behind it left another gap up, very strong action. The euro rose 0.31% to $1.3106. This changes nothing. When the Euro drops below about 1.3035 - 1.3000, look for a spectacular plunge. Would have to close above 1.3200 to gainsay that outlook.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday

© 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission.

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.